By Kim Richters
Shares in Siemens Gamesa Renewable Energy traded sharply lower on Tuesday after the turbine maker said its profitability in the next fiscal year will weaken.
For its 2020 financial year, the Spanish company expects an adjusted margin on earnings before interest and taxes of 5.5%-7%, compared with 7.1% achieved in the fiscal year ended Sept. 30. For the just ended financial year, the margin outlook range was 7%-8.5%.
The company expects full-year revenue of between 10.20 billion and 10.60 billion euros ($11.39 billion-$11.83 billion) compared with fiscal 2019 revenue of EUR10.23 billion.
At 1009 GMT, shares in the company traded 8.4% lower at EUR11.78.
The company, majority-owned by Siemens AG, said price pressure is weighing on profitability despite good prospects in the industry. It has embarked on a restructuring program that has helped it save a cumulative EUR1.4 billion.
To improve competitiveness, Siemens Gamesa said it would cut 600 white-collar jobs over the next two years.
The new guidance is below expectations, Renta 4 Banco analyst Angel Perez Llamazares said.
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